Aristotle Atlantic’s Large Cap Growth Sold Adobe (ADBE) Due to Concerns of Increased Competition

Market Overview - In Q3 2025, the US equity market saw a rally, with the S&P 500 Index increasing by 8.12% and the Bloomberg U.S. Aggregate Bond Index rising by 2.03% [1] - Aristotle Atlantic's Large Cap Growth strategy achieved a return of 9.76% gross of fees (9.61% net of fees), underperforming the Russell 1000 Growth Index, which returned 10.51% [1] Company Performance: Adobe Inc. (NASDAQ:ADBE) - Adobe Inc. reported a one-month return of -3.58% and a 52-week decline of 33.71%, with shares closing at $331.11 on November 14, 2025, and a market capitalization of $139.645 billion [2] - In Q3 2025, Adobe Inc. achieved record revenue of $5.99 billion, reflecting a 10% year-over-year growth [4] Strategic Decisions - The company sold its holdings in Adobe Inc. due to increasing competition from AI startups and hyperscalers, which is expected to pressure pricing and seat growth [3] - Concerns were raised regarding Adobe's ability to monetize its AI product offerings quickly enough to sustain its Digital Media Annualized Recurring Revenue (ARR) growth rates [3]